Vitalik Buterin, the co-founder of Ethereum (ETH), has confidently assured the community that the cost of using the network will soon undergo a drastic reduction.
In a new interview with CNN Business, Buterin also spoke about the current state of cryptocurrencies in the market, stating that he’s not surprised by the crypto crash.
Vitalik Buterin: It’s Certain That Ethereum (ETH) Gas Fees Will Drop
CNN referenced billionaire Mark Cuban complaints to The Defiant in February, who said Ethereum (ETH) is being limited by ridiculous transaction costs, the major issue that has been preventing the network to grow as expected.
According to the report, Buterin acknowledged that transaction fees are very high right now and that the Ethereum blockchain can only process between 20 and 50 transactions per second despite very high demand.
However, the co-creator of Ethereum said he’s “very confident” that the cost of using the network will come down due to a major technical makeover underway, which will allow the Ethereum network to scale up rapidly.
It’s no longer news in the crypto community that Ethereum is moving away from proof of work (PoW), the original algorithm in the blockchain technology to the newest protocol called the proof of stake.
In a nutshell, Ethereum’s newly adopted protocol, PoS, will incentivize participants with a reward paid in ETH to remain online and keep the network in check. This implies that miners that consume so much energy will no longer be needed.
At Decrypt’s Ethereal Summit in early May, Vitalik Buterin stated that the optimistic estimate of the Ethereum 2.0 launch is the end of this year.
Vitalik Buterin Is Not Worried About Crypto Crash
Vitalik Buterin, who has over the past week, lost a huge part of his personal wealth, told CNN that he’s not worried about the crypto market crash, stating that the market has experienced several of them before.
“We’ve had at least three of these big crypto bubbles so far. And often enough, the reason the bubbles end up stopping is because some event happens that just makes it clear that the technology isn’t there yet.”
The Ethereum creator also told CNN that Elon Musk, the CEO of Tesla, is not going to be an influence on cryptocurrency forever, stating that crypto markets will continue to learn:
“Elon Musk tweeting is something that the crypto space has only been introduced to for the first time literally last year and this year. I think it’s reasonable to expect a bit of craziness. But I do think that the markets will learn. Elon is not going to have this influence forever.”
He added that “It feels like crypto is close to ready for the mainstream in a way that it wasn’t even four years ago. Crypto isn’t just a toy anymore.”